Photocure ASA · OSL:PHO
Photocure ASA — Q3 2018 Earnings Presentation
24 slides from Photocure ASA's earnings presentation, Nov 8, 2018
Slide 1: Results for Third Quarter and First Nine Months 2018
PHOTOCURE ASA RESULTS FOR THIRD QUARTER AND THE FIRST NINE MONTHS 2018 8 November 2018 Daniel Schneider, President and CEO Ambaw Bellete, President, Photocure Inc. and Head, US Cancer Commercial Operations Erik Dahl, CFO
Slide 2: Disclaimer
DISCLAIMER By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Photocure (the “Company”) fo
Slide 3: Delivering on Key 2018 Objectives
DELIVERING ON KEY 2018 OBJECTIVES • Q3 US sales revenue up 42% in US$ YOY, driven by in-market volume increase in Q3 of 35%. YTD revenue growth 45% in US$ Significant growth of Cysview® in • 43% growth YOY in installed blue light enabled cystoscopes in market to 137 by US TURBT market end of Q3 • Im
Slide 4: Strategic Focus on Transforming Bladder Cancer Management
STRATEGIC FOCUS ON TRANSFORMING BLADDER CANCER MANAGEMENT CORE PRODUCT ON MARKET: EVALUATE NEW CORE PRODUCTS: Complementary, NON-CORE PIPELINE PRODUCTS: within bladder cancer Visonac® (Acne treatment) Strategic focus on bladder cancer detection & management core Cevira® (Cervical disease treatment)
Slide 5: Hexvix/Cysview Update
Hexvix/Cysview Update re ee
Slide 6: Cysview Continued Strong Momentum in US
CYSVIEW CONTINUED STRONG MOMENTUM IN US • 42% increase in U.S. Cysview sales revenue driven by in market volume growth from both current and new accounts. • Year to date U.S. revenues increased 45% and unit growth of 38% • 43% YoY increase in permanent Blue Light Cystoscope placements finishing with
Slide 7: US Launch of Cysview in Surveillance of Bladder Cancer Patients
US LAUNCH OF CYSVIEW IN SURVEILLANCE OF BLADDER CANCER PATIENTS PRESENTS A LARGE MARKET OPPORTUNITY • BLC with Cysview for surveillance launch strategy is focused on the accounts that participated in the BL Flex trial, current existing BL enabled accounts and the top large Urology groups in the US i
Slide 8: Blue Light Cystoscopy with Cysview for Surveillance
BLUE LIGHT CYSTOSCOPY WITH CYSVIEW FOR SURVEILLANCE Video clip from UT Southwestern in Dallas, TX
Slide 9: 2018 Media Programs
Urology Times Email Oct 22 2018 MEDIA PROGRAMS bos oe Urology Times: eae FOCUS ON: BLADDER CANCER Renal and Urology News (RUN) Article Series: April, May, Sep 2018 est onion for rare a Peart ealthaey ews Cohan mee ry Sopeatecpen ron bs Tapani Te ‘ i . The Role of Enhanced Cystoscopy in Patients With
Slide 10: New Positive 2019 Reimbursement Coding, Coverage and Payment
NEW POSITIVE 2019 REIMBURSEMENT CODING, COVERAGE AND PAYMENT Medicare Private payer • Procedure fee for cystoscopy • Procedure fee for cystoscopy • Cysview paid at ASP +6% in clinic or Cystoscopy Physician Office setting with the new A • Cysview paid at contracted rate (ASP +6 to 15%) Code for Cysvi
Slide 11: Cysview Significant Growth Opportunity with New US Label
CYSVIEW SIGNIFICANT GROWTH OPPORTUNITY WITH NEW US LABEL BLC with Total Number of Number of Market • Our focus is to establish and build BLC with Cysview Cysview Cystoscopy Procedures potential in Market Procedures in top 25 top 25 business in the top 25 TURBT and Surveillance segment MSA* MSAs* mar
Slide 12: Blue Light Cystoscopy with Cysview: New Standard of Care
BLUE LIGHT CYSTOSCOPY WITH CYSVIEW New Standard of Care for Bladder Cancer Over 130 hospitals and institutions and counting! BLC with Cysview – A New Standard of Care in 74% of NCCN Designated Cancer Centers BLC with Cysview is in 39 of the NCI Designated Cancer Centers A New Standard of Care in 74%
Slide 13: Cysview Push & Pull Strategies
CYSVIEW PUSH & PULL STRATEGIES Approval and Launch in surveillance market Received reimbursement code in US Increase US market penetration Increase investment in US M&S Drive continued growth in the US in the TURBT segment and successfully launch in the surveillance market 13
Slide 14: Hexvix Nordic Update
HEXVIX NORDIC UPDATE • Third quarter revenue increased 19% YoY. The increase was driven by higher billing compared to last year as distributors third quarter last year reduced their inventory – Impact of inventory reduction in the third quarter 2017 approx. NOK 0.5 million • YTD revenue increased 10
Slide 15: Hexvix/Cysview Partner Update
HEXVIX/CYSVIEW PARTNER UPDATE • Partner in-market unit sales increased 6% YoY In-market unit sales (by Q) in the third quarter. YTD decline of 1% 12 000 – Germany at level with last year. – Decline in France caused by loss of very 10 000 favorable reimbursement since Q2’17; decline counteracted by s
Slide 16: Financials
Financials a cary
Slide 17: Segment Performance - Proforma Third Quarter 2018
SEGMENT PERFORMANCE - PROFORMA THIRD QUARTER 2018 ProF ProF Commercial Franchise MNOK Q3 '18 Q3 '17 YTD '18 YTD '17 • Strong revenue growth in US, third quarter revenue Commercial Franchise growth in US$ 42%, YTD 45% Nordic revenues 10.6 9.0 33.5 30.4 • Continued progress in Nordic, third quarter re
Slide 18: Consolidated Income Statement - Proforma Third Quarter 2018
CONSOLIDATED INCOME STATEMENT - PROFORMA THIRD QUARTER 2018 • Recurring EBITDA significantly improved from ProF ProF MNOK Q3 '18 Q3 '17 YTD '18 YTD '17 third quarter and YTD last year – Increased revenue driven by US Hexvix / Cysview revenues 43.5 34.6 126.6 109.3 – Increased sales & marketing expen
Slide 19: Cash Flow Third Quarter 2018
CASH FLOW THIRD QUARTER 2018 • Cash flow from operations third quarter at MNOK Q3 '18 Q3 '17 YTD '18 YTD '17 NOK -5.3 million, an improvement from first Cash flow from: and second quarter 2018 - Operations -5.3 -3.4 -35.3 -31.1 – NOK -2 million related to Q2 - Investments 0.2 -10.6 -0.7 -15.1 restru
Slide 20: Balance Sheet 30 September 2018
BALANCE SHEET 30 SEPTEMBER 2018 • Non current assets include NOK 27.2 million in MNOK 30.09 31.12 30.09 investments in tangible and intangible assets and 2018 2017 2017 deferred tax asset of NOK 57.5 million Non-current assets 85.8 87.5 78.9 Inventory & receivables 49.9 46.2 47.4 • No interest beari
Slide 21: Summary and Outlook
Summary and Outlook = Re cr rc
Slide 22: Delivering on Key 2018 Objectives
DELIVERING ON KEY 2018 OBJECTIVES • Q3 US sales revenue up 42% in US$ YOY, driven by in-market volume increase in Q3 of 35%. YTD revenue growth 45% in US$ Significant growth of Cysview® in • 43% growth YOY in installed blue light enabled cystoscopes in market to 137 by US TURBT market end of Q3 • Im
Slide 23: Attachments
Attachments ee
Slide 24: Income Statement Third Quarter Reported
INCOME STATEMENT THIRD QUARTER REPORTED Income Statement - Segment Income Statement - Consolidated MNOK Q3 '18 Q3 '17 YTD '18 YTD '17 MNOK Q3 '18 Q3 '17 YTD '18 YTD '17 Commercial Franchise Hexvix / Cysview revenues 43.5 35.5 126.6 109.6 Nordic revenues 10.6 9.0 33.5 30.4 Other revenues 0.9 0.2 5.1